Tubacex (TUB) investor relations material

Executive summary

• Sales declined 6.3% year-over-year to €719.3 million in 2025 amid global market weakness, with profitability resilient as adjusted EBITDA reached €105.8 million and margin improved to 14.7% from 13.9% due to premium product mix and cost discipline.

• Major non-recurring, non-cash accounting adjustments impacted EBITDA by €30.7 million, EBIT by €49.3 million, and net income by €47.2 million.

• Order book closed at €1,233 million, with a strong focus on high value-added, premium products.

• Abu Dhabi plant became fully operational, supporting the ADNOC contract and exceeding planned volumes for 2025.

• Strategic focus remains on cash generation, working capital normalization, and improving return metrics.

Financial highlights

• Adjusted EBIT was €58.3 million, down 8.3% year-over-year; adjusted net profit was €15.9 million, down 30.5%.

• Net financial debt increased to €344.8 million (3.3x EBITDA), mainly due to working capital tied to strategic project ramp-ups.

• Working capital peaked at €324 million, representing 45% of sales, driven by strategic projects like ADNOC.

• Share price closed at €3.35, market cap €422 million, up 2.5% for the year.

• Dividend payout policy maintained at 40% of adjusted net profit; €6.4 million proposed for 2025.

Outlook and guidance

• 2026 outlook remains prudent due to ongoing macroeconomic and geopolitical uncertainty, with focus on cash generation, working capital normalization, and profitable growth.

• Aim to reduce net debt/EBITDA below 3x by end of 2026 and under 2x by 2027.

• Commercial selectivity prioritized to maintain profitability over volume growth.

• Robust opportunity pipeline in Subsea and Nuclear, but award timelines remain uncertain.